1.3 Business Ownership (Advantages And Disadvantages Of Business Ownership)

Question 1

Advantages of sole trader (2p)

Answer 1

Easy set up
Cheap set up

Question 2

Disadvantage of sole trader (4p)

Answer 2

Isolating
Difficult to expand
Difficult to get time off
Unlimited liability

Question 3

Advantages of partnership (3p)

Answer 3

Ability to take on more business
Access to more capital
Each partner brings a different skill

Question 4

Disadvantage of partnership (2p)

Answer 4

Partners can fall out
Unlimited liability

Question 5

Advantages of Ltds (2p)

Answer 5

Limited liability
Unlimited shareholders

Question 6

Disadvantage of Ltds(2p)

Answer 6

Paying dividend
Difficult to sell shares

Question 7

Advantage of Plc (2p)

Answer 7

Make lots of money
Anyone can buy shares

Question 8

Disadvantage of Plcs (2p)

Answer 8

• Company reports have to be made public
• HOSTILE TAKEOVER can occurr if a shareholder owns more than 50% of shares